Officials refused to say how big the deal was. Ranbaxy (Netherlands) BV, its wholly-owned subsidiary, has entered into a definitive agreement to acquire the stake.

Ranbaxy said it entered into a wide-ranging business alliance with Japan’s Nippon Chemiphar Co. Ltd.(NC) and its subsidiary, Nihon Pharmaceutical Industry Co (NPI). The Japanese pharmaceutical market is estimated to be $ 50 billion (600 billion Japanese yen).

Under the wide-ranging business alliance, Ranbaxy Labs, NC and NPI will work together to launch the former’s ethical and drug delivery system (DDS) based products and generic products in Japan and manufacture and launch Nippon Chemiphar’s existing products in overseas markets by leveraging R&D capabilities and sales and distribution network of both companies.

The alliance will provide Ranbaxy Labs a platform to gain experience of the Japanese regulatory framework and market environment. The alliance would provide access to distinctive product portfolio and wide distribution network of Nippon Chemiphar Co and Nihon Pharmaceutical Industry.

The two Japanese companies are in the areas of ethical as well as branded generic pharmaceuticals business with a presence in the Central Nervous System, Cardiovascular and Gastro Intestinal segments. While NC, the parent company, is engaged in active R&D, the manufacture and sale of ethical drugs, NPI focuses on generic drugs business under support from its parent (NC).

Nippon Chemiphar and Nihon Pharmaceutical aim to supplement their portfolio of branded generic drugs and to expand the branded generic business in Japan, and the alliance with Ranbaxy, which has strong presence in global generics market, is expected to strengthen their position in Japan. Moreover, the Japanese companies intend to supplement their ethical drugs pipeline as well as manufacture and launch their products in overseas markets under this alliance.

Commenting on the acquisition, Ranbaxy president (pharmaceuticals) Brian Tempest said: “I am delighted at this first step that Ranbaxy is making towards Japan, the second largest pharmaceutical market of the world.”

Nippon Chemiphar president Kazushiro Yamaguchi said: “We are glad that with this wide-ranging business alliance. The two firms will enrich their ethical pharmaceutical products and branded generic pharmaceutical products, which will widen our choices of manufacture, drug delivery system and distribution.”

The businesses of NC Group include pharmaceutical, diagnostic, hospital service, healthcare business. Nippon Chemiphar, its parent company is into manufacture and distribution of pharmaceuticals. Nihon Pharmaceutical Industry is engaged in manufacturing and sales of generic drugs.